FT takes heavy loss on Sifted investment as European tech funding falters

The Financial Times has substantially written down its investment in Sifted, the publication dedicated to European start-ups, after a sharp downturn in technology funding across the continent. Recent company filings reveal the FT increased its stake in Sifted from 14.4 percent to 17.5 percent in June 2024, investing £614,000 to bolster its position with the site. However, just months later, £550,000 of that sum was wiped off the books—effectively erasing nearly 90 percent of the new capital injected into Sifted.

Sifted, founded in 2019 by innovation editor John Thornhill and supported financially by the FT, has promoted itself as a “critical friend of the European start-up ecosystem” since its inception. Originally launched as a free news outlet, Sifted imposed a paywall in 2021 and last year reported a daily newsletter reach of 120,000 and a 32 percent year-on-year rise in pro-level subscribers. Recent accounts document a reduction in Sifted’s staffing, with headcount dropping from 56 in 2023 to 47 in 2024.

The FT’s decision was detailed in its annual accounts. Upon completing its annual impairment review, management stated the value of Sifted Limited could not be supported, leading to an impairment charge of £555,000.

Pressure on digital publishers has intensified as artificial intelligence upends search traffic, prompting many to lean more heavily into subscription-driven models. A number of media groups have scaled back European technology coverage, with TechCrunch laying off its ten-person European editorial staff earlier in the year despite publisher Regent’s insistence that it remained committed to the region.

Venture activity across European technology firms has slumped sharply since its 2021 peak when low interest rates drove record levels of capital into start-ups. Atomico research indicates funding for European start-ups reached around £33 billion this year—less than half the pandemic-era high.

Despite these pressures, Financial Times revenues improved by 2.5 percent to £454.6 million in 2024, with print and digital subscribers reaching a record 1.5 million. Digital-only subscriptions matched the 6 percent annual increase. Nonetheless, advertising income provided a weak spot, sliding from £151.6 million to £146 million. The company recently confirmed that The Next Web, its Amsterdam-based technology conference and news operation, will also close following a strategic business review seeking to streamline operations.